Cabinet extends TAR UMT tax relief

CABINET has approved a series of policy decisions covering higher education, social protection, defence procurement and public sector retirement.

These include a 10-year extension of tax relief for Universiti Pengurusan dan Teknologi Tunku Abdul Rahman (TAR UMT) and the removal of mandatory contributions under PERKESO’s LINDUNG 24 Hours scheme.

Government spokesman Datuk Fahmi Fadzil said the Cabinet, during its meeting on Wednesday, reviewed several key matters and agreed on measures aimed at supporting national priorities while addressing public concerns.

The Cabinet recognised TAR UMT’s longstanding role in providing quality and affordable private higher education opportunities for Malaysians.

Following the review, Fahmi said: “Prime Minister Datuk Seri Anwar Ibrahim approved an extension of the university’s tax relief status for a further 10 years.”

However, he explained that TAR UMT will continue to be subject to compliance monitoring throughout the approval period, including the requirement to submit audited annual financial statements in accordance with subsection 44(6) of the Income Tax Act 1967.

The Cabinet also decided that contributions under the Non-Occupational Accident Scheme, known as LINDUNG 24 Hours, will no longer be compulsory and will instead operate on a voluntary basis with immediate effect.

The decision follows public feedback on the implementation of the 0.75 per cent contribution from employees’ salaries under the Social Security Organisation (PERKESO or SOCSO).

Further details on the revised implementation framework will be announced by the Ministry of Human Resources (KESUMA).

In a separate decision involving defence procurement, the Cabinet instructed the Ministry of Defence to immediately suspend all new acquisitions of defence equipment and assets from Norway.

The decision follows Norway’s cancellation of an export licence for missiles intended to equip the Royal Malaysian Navy’s Littoral Combat Ships (LCS), raising concerns over the availability of key defence systems for the vessels.

Meanwhile, the Government has decided that there is currently no requirement to raise the mandatory retirement age, confirming that the retirement age for public sector employees will remain at 60.

“The Government would continue to assess policies based on national interests, economic considerations and the welfare of Malaysians,” Fahmi added. - July 8, 2026